Global Sourcing To Benefit All: Report

New Delhi: | Updated: Jan 14 2004, 05:30am hrs

Debunking several myths concerning business process outsourcing (BPO), market research and advisory services firm Zelos Group has said that all companies should consider offshore outsourcing, especially those with contact centres.

Offshore BPO is a mega-trend that will change business worldwide. The cost has fallen sufficiently to open up vast pools of low-cost, educated labour in developing countries, Zelos Group representative Bryan Mekechuk said, who reviewed 18 contact centres, in five cities in India.

This report, written exclusively for executives considering using offshore resourced, is based on primary research and site visits and reviews by Mr Mekechuk, an international expert in business processes and contact centres.

The report indicated that a global sourcing strategy can be effective for companies with sales of less than $200 million.

In its focus on India, the report examined cost comparisons between onshore and offshore outsourcing. It is myth, according to the report, that only large companies can outsource their business processes.

Zelos Group asserted that geopolitical stability will increase as more US businesses rely on India-based resources to function.

Large US companies like General Electric have moved important business processes to India. The result of this movement is an increase in geopolitical stability, as these corporations will put pressure on this and subsequent US administration to avoid tension with India, Mr Mekechuk said. The implication is that although the perceived geopolitical risk of India may be high, the actual risk is low.